Pi restaurant will stay open while going through bankruptcy process

Friday

Jun 25, 2010 at 12:15 AMJun 25, 2010 at 12:37 PM

Pi fans take note, it’s not closing time just yet.Set to be put on the auction block Thursday morning during a foreclosure sale, the popular downtown bistro found a way to avert what appeared to be the inevitable.

By Suevon LeeStaff writer

Pi fans take note, it’s not closing time just yet.Set to be put on the auction block Thursday morning during a foreclosure sale, the popular downtown bistro found a way to avert what appeared to be the inevitable.In an 11th-hour move that halted foreclosure proceeding, Pi co-owner Thomas McDonald filed Wednesday for Chapter 13 bankruptcy protection, listing assets of $452,000 and liabilities that exceed $1 million.“We have debts out there we need to restructure. This is the last option we had after Clay [Albright] wouldn’t allow us to do anything else,” McDonald said Thursday.In the meantime, he said, the restaurant will reopen Friday and Saturday evening for bar service and resume dinner service Tuesday.Albright, a real estate developer, has refused to extend the deadline on an overdue $375,000 balloon mortgage payment, which kicked into gear the foreclosure proceedings.He expressed displeasure Thursday over the bankruptcy filing, portraying it as a stalling tactic by individuals saddled with debt and behind not only on mortgage payments but taxes.“The problem is, they owe more than their business is worth. They’re trying to squeeze it,” he said.There also is disagreement between the two parties over recent efforts to keep Pi’s doors open – namely, finding a new investor to take over the mortgage and lease back the property.McDonald claims he has found an able and willing investor, but that Albright has refused to sign off on the deal because he is holding Pi’s owners liable for debts unrelated to the downtown property.The developer was unapologetic. “They have a legal right to walk in with a check and pay it [their debt] off,” he said. “I can’t clear their title up until they can clear their debts. The taxes have to be settled.”Several weeks ago, Pi owners announced the venue would be closing because they could not pay off the balloon mortgage. Last Saturday evening was scheduled to be Pi’s last hurrah after two years in business. After remaining dark this week, the establishment will rekindle its lights, but how long they’ll stay on this time remains to be seen.Contact Suevon Lee at 867-4065 or suevon.lee@starbanner.com.

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